2008-07-21 12:24:15 -

- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Texas Capital Bancshares, Inc. (Nasdaq: TCBI), Human Genome Sciences, Inc. (Nasdaq: HGSI), Brasil Telecom (NYSE: BRP), Evergreen Solar Inc. (Nasdaq: ESLR) and

Comerica Inc. (NYSE: CMA).

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Here are highlights from Friday's Analyst Blog:

Texas Capital Misses Target

Texas Capital Bancshares, Inc.'s (Nasdaq: TCBI) 2Q08 operating results were $0.22 per share versus $0.31 per share recorded in the prior-year period. Results came in well below our expectation, even though 2Q08 average portfolio loans expanded 21.3% year-over-year. The miss from expectations resulted from significantly higher-than-expected provisions for loan losses and nonperforming assets recorded for the quarter.

Within the press release, the company's guidance is now $30-33 million, or $1.12-1.23 per share. Therefore prior to the conference call, we are lowering our 2008 and 2009 earnings expectations to $1.18 per share and $1.40 per share, respectively, from $1.26 per share and $1.45 per share. We continue to view the shares of TCBI as a Hold.

Human Genome Risks Balanced

Human Genome Sciences, Inc. (Nasdaq: HGSI) is a biopharmaceutical company focused on discovering novel protein and antibody drugs through gene-based research and albumin fusion technology. The company has two candidates in late-stage development.

Albuferon is in phase III studies for hepatitis C and LymphoStat B is in phase III trials for lupus. Both candidates have potential to become blockbusters, while we see LymphoStat B is a higher risk program. We believe the risk/reward is balanced for HGSI at this point. Therefore, we maintain our Hold rating for HGS. Our six month price target is $7.5.

Brasil Telecom Still Impressive

We are keeping our current Buy recommendation on Brasil Telecom (NYSE: BRP). The company posted better-than-expected results in the second quarter of 2008, and the short-term outlook remains positive. The company also has solid cash flow, decent operating margins in the wireline business, and an attractive valuation.

Moreover, the growth in the wireless and the broadband segments are encouraging and should continue in future quarters. The economic environment in Brazil remains positive, despite the continued rate hikes and threat of worldwide inflation. The merger with Telemar is very positive, and the voluntary public tender offer will create a more positive environment for the stock in the very short term.

Evergreen Solar Building Out

Evergreen Solar's (Nasdaq: ESLR) product sales of $18.1 million for the reported 2nd quarter 2008 were down a slight 1.1% from $18.3 million in the sequential 1st quarter of 2008; yet up a significant 35.1% from $13.4 million in the prior-year 2nd quarter of 2007.

On the bottom-line, for the 2nd quarter, the company suffered a net loss of $8.9 million, or $0.08 per share, compared to a net loss of only $25,000, for the 1st quarter of 2008; and a net loss of $7.5 million, or $0.09 per share, in the 2nd quarter of 2007.

Comerica Sell Rec Continued

Comerica Inc.'s (NYSE: CMA) second quarter earnings from continuing operations of $0.58 per share were four cents short of our estimate. The miss mainly stemmed from a decline in net interest margin (down 31 bps sequentially to 2.91%) and a rise in the provision for loan losses.

Based on the 2Q08 results and our concerns for further credit deterioration, we have moderated our FY08 and FY09 expectations to $2.43 per share and $3.04 per share. Our new six-month price target of $22.00 per share is based on a multiple of 9.1x our projected 2008 EPS. We also suspect that the bank may need to cut its dividend in the near term and are thus maintaining our Sell recommendation on the shares of CMA.

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